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A CONVERSATION ABOUT PERCEIVED VALUE:

 A customer asked a contractor friend of mine how much it would cost to do a project.
 My friend gave him a proposal: R4500

Customer: That’s seems really high.
 My friend asked: What do you think is a reasonable price for this job?
 The customer answered: R2500 max

My friend: Ok, then I invite you to do it yourself.
 Customer: I don't know how to.

My friend: Alright, then how about for R2500 I'll teach you how to. So besides saving you $2000, you'll learn valuable skills that will benefit you in the future.
 Customer: Sounds good! Let’s do it!

My friend: Great! To get started, you'll need some tools. A chop saw, table saw, drill, bit set, router, skill saw, jig saw, tool belt, hammer, etc.
 Customer: But I don't have any of those tools and I can't justify buying all of these for one job.

 My friend: Ok. Well then for an additional R300 I can rent my tools to you to use for this project.
 Customer: Ok. That’s fair.

My friend: Great! We will start the project on Monday.
 Customer: I work Monday through Friday. I’m only available on weekends.

My friend: If you want to learn from me then you will need to work when I work. This project will take 3 days so you will need to take 3 days off work.
 Customer: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!

 My friend: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.Customer: What do you mean by that?

My friend: Doing a job completely from start to finish includes time spent to plan the project, pick up materials, travel time, gas, set up time, clean up, and waste disposal amongst other things. That’s all-in addition to the actual project itself. And speaking of materials, that’s where we will start on Monday, so I need you to meet me at the lumberyard at 6:00am.

Customer: At 6am?!! My workday doesn’t usually start until 8am!

My friend: Well then, you’re in luck! My plan is to start on the deck build by 8am. But to do so we have to start at 6am to get materials picked up, loaded and delivered to your job site.

Customer: You know, I’m realizing that a lot more goes into a job than what a customer sees in the finished project. Your proposal of R4500 is very reasonable. I would like you to handle the project.


CONCLUSION:

When you pay for a job, especially a custom job, (physical project or digital project) you pay not only for the material and the work to be completed. You also pay for:-

Knowledge - Experience - Custom Skills - Tools - Time to plan & prepare - Professionalism - Work Ethic - Excellence - Discipline - Commitment - Integrity - Taxes - Licenses - Sacrifices - Liabilities - Insurance

If their proposal exceeds your budget, there’s nothing wrong with getting other proposals.

Just remember... you get what you pay for.

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